All this free society capitalist stuff has proven to be quite bullshit in numerous cases.
That works when people build businesses in their area, hire people from their area, and are focused on their area.
With a company like Wal-Mart, nothing they do is in the interests of anyone but their bottom line, their shareholders, and their profits. If it is profitable, they will do anything, from lowering or keeping wages down, to not giving health insurance. If walmart does well, their employees will not see it, doubtfully they'll even know about it.
They're a lowest common denominator type store, and they use their ridiculous size to force companies to lower supply costs. They can drive out any competing business in the area, and thus keep their costs down, and thus financially retard an area.
They are too big, it is self-defense for cities to enact these kinds of things to keep Wal-Mart out.
What, do you think these ideas and movements have popped up for no reason? These movements are reactive, not just going after money.